Ask The Agent: Why Do My Auto Rates Keep Rising?

Are you wondering why your auto insurance rates continue to rise, even when you’re a great driver who hasn’t had a claim yourself? Our agent, Shaun Middleton explains the role that key factors such as inflation, technology, and distracted driving play in the ever-increasing cost of car insurance. To have more of your insurance questions answered by our expert agents, click here for our YouTube series. 

Reason #1: Technology

According to Shaun, new technology such as backup cameras and collision mitigation systems that stop the car for you cost more money to replace and are a key factor in higher auto rates.

“Windshield replacements and sensors in the windshield that need to be recalibrated cost money. Side mirrors have sensors in them as well for blind-spot monitoring, backup cameras, and all sorts of upgrades.”

Reason #2: Distracted Driving

Shaun says that most claims come from accidents where distractions inside the vehicle are to blame.

“Distracted driving; Texting, phone calls, distractions in the vehicle like passengers, pets, eating and drinking.”

Reason #3: Inflation

Inflation is another factor in higher auto rates. Due to supply chain issues coming out of the pandemic, the parts needed to repair vehicles are not readily available, which makes the demand for them high, driving up the costs and affecting insurance premiums. 

“The cost of vehicles has increased. So has the number of accidents, and the availability of parts is pretty bad. So, to be able to replace a car is going to cost a lot more money.”

 

Should you have any questions regarding your current coverage or want further information on these points, Basin Pacific Insurance is here for you. For more information on auto insurance coverage click here, or contact us at (509) 765-4785.